Driving the Day

U.S. CHAMBER, 200 GROUPS LAUNCH PRO-USMCA COALITION TODAY: More than 200 organizations representing U.S. manufacturers, farmers and other industries today are rolling out a new coalition to push for congressional approval of USMCA.

The new coalition will mark the largest lobbying effort launched to date to support passage of the new deal. The USMCA Coalition will press lawmakers for “expeditious passage of the agreement” and “will work to educate the American public about the benefits of the new deal,” according to a statement that will be released later today.

Who’s involved: The lobbying push is being led by various groups including the U.S. Chamber of Commerce, Business Roundtable, National Association of Manufacturers, American Farm Bureau Federation and Fiat Chrysler Automobiles. A range of business organizations and companies from financial services to textiles are involved, such as Citi, Cargill and UPS.

“USMCA is critical to the success of American businesses, farmers, and workers,” said Cathy Van Way, head of government relations for major manufacturer Cummins and co-chair of the coalition. The deal “will help rural and urban communities across the U.S. thrive and we encourage Congress to approve this important agreement.”

FEARS GROW TRUMP WILL ACCEPT WEAK CHINA DEAL: Trump announced Monday that the U.S. and China are “very, very close” to a deal, raising fears among some advisers and lawmakers that the president is ready to settle for a weaker deal to avoid tanking financial markets.

“I consider this entire exercise a fraud,” said Derek Scissors, a China analyst at the American Enterprise Institute who has advised the Trump administration on the negotiations.

A former U.S. trade official also said she was increasingly pessimistic about the outcome of the talks, especially if the final deal comes down to a meeting between Trump and Chinese President Xi Jinping, as Trump has said could happen. “That’s not very good for our negotiating position to leave it to a dinner or a daylong meeting between the presidents,” said Amy Celico, a principal at the Albright Stonebridge Group, a Washington-based business advisory firm. Doug has the full story here.

SCHUMER: NOT THERE YET ON CHINA: Senate Minority Leader Chuck Schumer said a delay in raising tariffs on China is “all well and good” if Trump ultimately clinches a strong deal. “But we are not there yet, and my message to President Trump is: Don’t back down,” he said on the Senate floor on Monday.

Schumer praised Trump for having the right instincts when it comes to China but said that “at other times, I believe his eagerness for the appearance of accomplishment gets the best of him.”

ROSS PLEDGES A NAFTA FIGHT: Commerce Secretary Wilbur Ross told a gathering of U.S. governors Monday afternoon that the USMCA would get a vote in Congress “hopefully this spring” — and he pledged the Trump administration would work to ensure its approval.

“It will generate a new era of North American investment,” he said. “And we will be doing everything in our power to make sure it is approved by the U.S. Congress.”

NAFTAWITHDRAWAL ON THE BACK BURNER? Amid warnings from economists, business groups, lawmakers and others that withdrawal from NAFTA would be a risky and damaging move — as well as one that could likely backfire in Congress — the Trump administration for now appears to have backed off its threats to pull out of the original deal.

In one example, Deputy U.S. Trade Representative C.J. Mahoney said during an off-the-record conference call with USMCA supporters and interest groups last week that “the choice for Congress is to keep NAFTA or to have an agreement which is better,” one participant on the call told Morning Trade. That participant, who spoke on condition of anonymity, noted that Mahoney did not mention withdrawal during the call, which was designed to rile up support among outside groups and encourage them to press Congress to move forward on the deal.

‘They hate me’: Notably, Trump did not bring up the prospect of withdrawal when he said USMCA approval will “probably” happen despite some Democrats’ feelings about him.

"I know how much they hate me, but they have to hate me even more not to get this deal approved. That's the only thing I can say," Trump told a group of governors at the White House. More here.

EU ROLLS OUT NEW TRADE STUDY: Trump threatened to “tariff the hell” out of the European Union if they don’t “play ball” in upcoming trade talks with the U.S. But Brussels made clear on Monday that its trading relationship with the U.S. isn’t a one-way street as the president might believe.

The delegation of the EU to the U.S. released a new study showing the 28-nation bloc is the single-largest foreign investor in the U.S., with $2.37 trillion in foreign direct investment. The study also notes that the EU is the top export destination for the U.S., with exports of American goods and services topping more than $528 billion in 2017. EU exports of goods and services to the U.S. amounted to roughly $629 billion in 2017.

EX-IM NOMINEES GET A VOTE (AGAIN): The Senate Banking Committee is set to vote today on the nominations of Kimberly Reed to lead the Export-Import Bank and on Judith Pryor and Spencer Bachus to serve as members of its board of directors. The three nominees were approved by the panel in the last session but will need to another vote under the current Congress to advance to the full Senate. The executive session is set to begin at 9:30 a.m.

U.S. CONTINUES TO BE A STICK IN THE MUD IN GENEVA: The U.S. didn’t budge when confronted with its blockage of new appointments to the Appellate Body at the World Trade Organization. “Our concerns have not been addressed,” the U.S. delegation said in a statement at a WTO Dispute Settlement Body meeting on Monday.

A group of 73 WTO members have put forth a proposal that calls for the establishment of a selection committee. The Appellate Body will be down to just one judge by December, rendering the WTO’s highest dispute panel functionless. A number of other proposals have been put forward to address U.S. concerns with judicial overreach and consistent lapses in meeting decision deadlines, but those have failed to sway the Trump administration from lifting its blockade to fill vacancies.

TRADE REMEDY CORNER

CHINESE CAST IRON SOIL PIPE EDITION: The Commerce Department announced on Monday that it has found evidence that certain imported cast iron soil pipe from China is being unfairly subsidized and dumped in the United States.

In its final determination, Commerce assigned anti-dumping duties of 235.93 percent on mandatory respondent Yuncheng Jiangxian Economic Development Zone HengTong Casting Co. and all other respondents. Commerce also calculated countervailing duties ranging from 14.69 percent to 109.27 percent for Chinese producers and exporters.

Imports of cast iron soil pipe from China were valued at $11.5 million in 2017, Commerce said. The U.S. International Trade Commission is scheduled to make a final decision on the investigation on or about April 8.

INTERNATIONAL OVERNIGHT

— Finding a way to hold China to any commitments it makes to the U.S. has been one of the most challenging aspects of the talks, the South China Morning Post reports.

— 2019 is turning into an important year for China as President Xi Jinping grows more wary of social unrest, The New York Times reports.

— Dutch Prime Minister Mark Rutte said a lot is happening behind the scenes to ensure the U.S. and EU reach a trade deal, CNBC reports.

— The U.S. and United Kingdom agree to a post-Brexit derivatives trading deal, The Guardian reports.

— The U.K. will get rid of EU trade remedy measures on a number of goods, including some from the U.S., after Brexit, Reuters reports.

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About The Author : Adam Behsudi

Adam Behsudi is a trade reporter for POLITICO Pro.

Prior to joining POLITICO, he covered international trade policy for Inside U.S. Trade, where he tracked down the latest news on the Trans-Pacific Partnership from exotic locales such as Auckland, New Zealand; Kota Kinabalu, Malaysia; and Leesburg, Va.

Before writing about anti-dumping, export controls and other trade subjects, Behsudi covered city hall for the Frederick News-Post. He got his start in journalism chasing crooked sheriffs and other crime-related news in the mountains of western North Carolina for the Asheville Citizen-Times

Behsudi earned his bachelor’s degree in 2005 from the University of Missouri. With the hope that journalism could return as a growth industry within his lifetime, he earned a master’s degree in interactive journalism from American University in 2010.